Ch. 23: The New Deal: 1933-1940

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Ch. 23 The New Deal 1933-1940

• Franklin Delano Roosevelt
• 20th Amendment
• New Deal
• 3 Goals
• 1st 00 days
• Poor
• Brain Trusts
• Pragmatism
• Bank Holiday
• Emergency Banking Relief Act 1933
• Fireside Chats
• Glass-Stegall Banking Act 1933
• Federal Securities Act 1933
• Securities Exchange Commission 1933
• Agricultural Adjustment Corps.
• Civil Conservation Corps.
• Public Works Administration 1933
• Civil Works Administration
• National Industrial Recovery Act 1933

• AAA Challenged
• Parity
• 2nd New Deal
• Eleanor Roosevelt
• Francis Perkins
• Social Security
• 1936 Election
• Works Program Administration
• Harry Hopkins
• WPA the Arts
• National Youth Administration
• Wagner Act 1935
• National Labor Relations Board
• Court Packing Bill
• Black Cabinet
• Mary McLeod Bethune
• Civil Rights
• Committee of Industrial Organization
• Sit Down Strike

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1932 Election

• FDR (Dem) wins
• Defeats Hoover
• Elected 4 times
• Distant cousin of Teddy
• Friendly demeanor can do attitude attracted
  voters
• Dems. take control of Senate
• Represented the poor
• Unlike Hoover, who represented the rich
  business

3
The New Deal

• FDRs platform
• Plan to get out of the depression
• 3 general goals
• Relief for the needy
• Economic recovery
• Financial reform
• FDR never said exactly what it was, he might not
  have had a clear idea either.
• 1st New Deal (1st 100 Days) Focused on banking
  job creation
• 2nd New Deal (2nd 100 Days) Focused on more
  extensive help for workers farmers

4
Waiting for FDR

• Elected in November 1932, didnt take office
  until March 1933.
• Depression grew worse during these 5 months
• 20th Amendment (1933) Presidential inauguration
  moved from March to January (today)

5
BRAIN TRUST

• Group of professors of economics etc., to help
  figure out how to get out of the depression

6
Pragmatic

• FDR believed in this idea
• Value of an idea try something whether it works
  or not, but try something!
• Proposed by philosopher William James

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Bank Holiday

• 1 day after taking office, FDR declared a bank
  holiday
• Purpose Closed all banks to prevent further
  withdrawals.
• Emergency Banking Relief Act (3/1933) Banks
  would be inspected, only financially sound banks
  would reopen.
• Renewed confidence in banks

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Fireside Chats

• Weekly radio addresses made by FDR addressing
  public concerns, in plain English, about the New
  Deal
• Felt as if FDR was talking directly to you
• 1st Chat Explained banking system to nation,
  next day people began to deposit their money back
  in banks

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• All legislation abbreviated

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Federal Deposit Insurance Corp. (FDIC) 1933

• Created by the Glass Stegall Banking Act of 1933
• Insurance on savings accounts up to 5,000
• Reassured people their accounts were safe
• Still used today

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More Finance Reform

• 1933 - Federal Securities Act (FSA) Corporations
  must report detailed stock info.
• Held liable for any misrepresentations
• 1933 - Securities Exchange Commission (SEC)
  Regulates stock market, no rigging
• Headed by Joseph Kennedy
• Still used today

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Agricultural Adjustment Act (AAA)

• Lowered production to raise crop prices
• Paid farmers not to grow crops
• Alleviate erosion dust bowl effect
• Hog Farmers paid to slaughter 6 million hogs
• Upset many Americans taught not to waste food,
  esp. when so many are hungry
• Successful prices slowly rose

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Work Projects

• Civilian Conservation Corps (CCC) Built roads,
  cultivated parks planted tress (200 mil.) to
  control flooding soil erosion
• 3 million went to work, men ages 18-25
• 30/mo., but 25 automatically sent home
• Free food uniforms
• 1933 - Public Works Administration (PWA) Gave
  money to states to create jobs (mainly schools,
  bridges, airports)
• Spend money to make more jobs
• Didnt make a dent in unemployment

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More ABCs

• Civil Works Administration (CWA) Created to
  provide more jobs since PWA failed
• Provided 4 mil. Jobs (roads schools)
• 6/1933 - National Industrial Recovery Act (NIRA)
  Promoted industrial growth set up fair codes
  of practice

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National Recovery Administration (NRA)

• Set prices on products to ensure competition
• Established working hours, minimum wage, banned
  child labor etc.
• Gave workers the right to unionize bargain
  collectively.
• Helped limit production to produces would make a
  profit.

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Tennessee Valley Authority (TVA)

• May, 1933
• Tennessee River Valley badly depressed area
• Project created thousands of jobs
• Built 20 dams providing flood control
  hydroelectricity
• Brought electricity to rural areas improving
  living conditions economy
• Effected 7 states
• Used as yardstick to measure fair prices for
  electricity

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Tennessee, Mississippi, Alabama, Georgia, N. S.
Carolina Virginia
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Social Security Act (SSA) 1933

• Insurance 65
• Unemployment
• Aid to families with disabled children
• Farmers not included at 1st

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Works Progress Administration (WPA)

• Create as many jobs as possibly as quickly as
  possible
• Headed by Harry Hopkins
• Employed 8 mil. People w/i 8 yrs.
• Built roads, schools, libraries, airports etc.
• Great value to nation, restored sense of purpose

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WPA the Arts

• Controversy over WPAs funding of artists,
  theaters, etc.
• Hired artists to paint public works of art, offer
  free plays, free concerts etc.
• Why would this be important?

• 20 of WPAs budget went to the arts
• Many people felt this money could be better
  spent

21
Homeowners Loan Corp. gave govt. loans to those
who faced foreclosure

• Federal Housing Admin. (FHA) provides loans for
  mortgages home repairs (even today)

22
Everyones a Critic

• Liberals felt the New Deal didnt do enough
  Conservatives thought it did too much
• Many people thought New Deal interfered with Free
  Market Economy

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Huey LongEvery Man A king

• Radical Left Opponent of FDR
• Gov. of Louisiana
• Kingfish
• Share the Wealth Welfare program that gave
  5,000 per year, division of land etc.
• 7.5 million supporters
• FDRs most serious threat for re-election
• Assassinated in 1935 at Louisiana State House

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Challenges to the AAA

• AAA challenged in Supreme Court forced to
  reorganize
• New AAA called for parity
• Crops would no longer be destroyed, but stored
  until they reached parity (a set price), then
  the crops would be sold
• Allowed farmers to repay debt

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• 1st New Deal put 4 mil. to work, but 10 mil. were
  still unemployed production lagged
• 1934 Democrats gain majority in Congress help
  FDR launch the 2nd New Deal
• 2nd New Deal focused on reform more extensive
  relief for farmers

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LADIES!

• Eleanor Roosevelt Wife, social reformer,
  humanitarian very persuasive
• Helped shape New Deal policies to appt. women to
  administration
• Traveled country to find out what people needed
  wanted observed social conditions
• Francis Perkins 1st woman cabinet member (Sec.
  of Labor)
• Social security (1933)
• Insurance 65
• Unemployment
• Aid to families with disabled children
• Farmers not included at 1st

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More Help for Farmers

• Farmers paid for practicing good soil
  conservation techniques
• Resettlement Administration (1935) Loaned money
  to sharecroppers tenant farmers buy own land
• Replaced by Farm Security Admin. (FSA) Helped
  tenant farmers become landowners

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Election of 1936
Are you better off now than you were four years
ago?

• 1st time blacks voted Democrat instead of
  Republican (why?)
• 1st time labor unions supported 1 candidate
• Represented vote of confidence

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National Youth Administration (NYA)

• Provided children with aid employment
• Provided organized sports
• Segregated

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Wagner Act 1935

• NRA declared unconstitutional, gave legislative
  powers to executive branch
• Forced to reorganize
• Wagner Act
• Listed unfair labor business practices
• Supported right of workers to organize engage
  in collective bargaining
• National Labor Relations Board Heard grievances
• Govt. on side of unions

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Fair Labor Standards Act 1938

• National minimum wage work week
• 40 hour work week, down from 44 hrs
• .25 to .40 per hr. (1st time)
• No one younger than 16 in factories
• No reforms in health insurance
• Unions made gains during the New Deal

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Court Packing Bill 1937

• FDR wanted to reorganize the Supreme Court
• So his New Deal legislation would be passed
• Appointed 7 new judges
• Creating Supreme Court sympathetic to New Deal
• FDR lost support as some see this as an attempt
  at dictatorship.

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Black Cabinet
Mary Bethune

• Group of influential African Americans that
  advised FDR on racial issues concerns
• Main organizer was Mary McLeod Bethune Ofc. of
  Minority Affairs
• Ensured hiring of African Americans
• Eleanor Roosevelt played role in opening doors
• Invited opera star Marion Anderson to perform at
  Lincoln Memorial after she was refused the right
  to sing at Constitution Hall

Marion Anderson
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Civil Rights

• FDR never committed to civil rights
• Didnt want to upset Southern Democrats (why?)
• Refused to support Anti-Lynching legislation
  elimination of the Poll Tax
• African Americans paid less
• Discriminated against in federal programs such as
  the FHA, CCC TVA

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Committee of Industrial Organization

• Organized Labor Union
• Allowed skilled non-skilled
• Allowed minorities
• Used Sit Down Strikes
• Dont leave, but dont work
• 1937 Memorial Day Massacre
• Republic Steel Plant, Chicago
• Police attacked striking workers outside plant,
  killing 10, dozens injured
• FDR friend of labor
• Unions flourish during New Deal
• Legalization, Better Working Conditions,
  Increased Bargaining Power

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Society Culture

• Big Band Music
• Glen Miller
• Benny Goodman
• Leading Ladies
• Betsy Davis
• Joan Crawford
• Margaret Mitchell (Gone w/the Wind)
• Amelia Earhart
• 1st women to fly across Atlantic non-stop
• Tried to fly around worlddisappeared
• Aliens???

• Radio most direct means of communication
• Drama
• Guiding Light
• Green Hornet
• Lone Ranger
• Actors/Actresses
• Bob Hope
• Orson Wells
• Jack Benny
• Clark Gable
• Greta Garbo

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Results of New Deal

• By 1939 New Deal over FDR faced with European
  problems What?
• New Deal did not end depression, but helped by
  creating jobs
• WWII causes end of depression
• New Deal compared to socialism
• Why?
• Created 40 bil. deficit
• 1st time Fed. Govt. took responsibility for
  economic wellbeing of citizens
• Expanded power of Fed. Govt.